n NISM Certifications
V-A NISM Series V-A
Medium

Identify the FALSE statement(s) i) Authorised signatories have to sign the request for transactions of institutional investors in mutual funds ii) Even if the Memorandum of Association and Articles of Association do not permit investment in mutual funds, the company can invest in mutual funds on the basis of a Board Resolution

Practice question from Nism VA Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Statement (i) is false

  2. Statement (ii) is false

    Correct answer

  3. C

    Both statements A and B are false

Why this is the answer

A company cannot invest in mutual funds unless its Memorandum of Association and Articles of Association specifically allow it. A Board Resolution alone is not sufficient.

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